SkyePharma announces financing agreement

SkyePharma has announced that it has entered into an agreement with Irish-based lending firm advised by Christofferson, Robb & Company (CRC) for a 35 million pounds 10-year secured amortising loan facility.

The repayment schedule is based on forecast milestone and royalties payments the company will received based on a number of specific products. The loan will be secured on a number of assets, including the receipts of these products.

SkyePharma reports that the loan facility may be extended by an additional 7.7 million pounds, subject to specific product development progress and due diligence.

Frank Condella, chief executive officer of SkyePharma, said: “We are very pleased to have the support of CRC, who have a strong global presence in structured credit, a deep knowledge of our business and a commitment to the long term.”

He added that the agreement provided a “flexible” financing alternative that would assist the company in its development and launch of Flutiform, a product currently in development whose expected cash outflows from the present to launch being in the region of 35.6 million pounds.

In September, the company announced half-year revenues of 25.6 million pounds, including royalty payments of 11.5 million pounds, with research and development costs being 19.2 million pounds.